Whenever you want a loan, the banks want a security to secure it. But you can’t always ask them, because you rarely have a large fortune or basic values like real estate when you need a loan. But: Security is not the same as security with a loan.
So it is quite possible to get a loan without collateral – at least to the extent that you do not have to pledge assets or a house for it. The classic case is purchases on account, because even in this case it is a kind of loan if the seller or dealer provides a service without first requesting collateral.
In the case of low-value goods and goods in particular
It often makes little sense from the point of view of a dealer to secure himself here with the provision of security. But: Even if many customers are not aware of this, most dealers today still obtain information about collateral, for example: For example, by performing an internal query on new customers as to whether they live in an area with high payment behavior.
This type of data collection without the knowledge of the customer has often been criticized recently. The payment defaults of other customers are documented – should there be above-average payment defaults in a residential area, one is often taken in clan-like terms with the other customers. You can tell that from the fact that you want to order something on account, but suddenly the dealer tells you that you should go in advance.
Often only a small amount of collateral is required, which is not generally assigned to the classic collateral – so many traders and banks working with them also provide financing and installments if you consent to information from a Schufa. If the Schufa informs the bank / the dealer that there is nothing or no misconduct, then many dealers and banks are often sufficient with small amounts of finance as security that they can conclude installment financing (which is also just an installment loan). That would also be an example of a loan without collateral.
A loan without collateral
It can thus be obtained especially for smaller sums, for which the examination of collateral is either too cumbersome for a dealer or the information provided by Schufa is sufficient. House banks also issue smaller loans without collateral, such as a consumer or consumer loan or a small installment loan to older customers. But: There is already a certainty here, too, because the bank can use its previous business transactions (savings, cash inflows and outflows) to assess what the customer’s creditworthiness is like.
However, the larger the loan or financing amount, the greater the risk of loss for a bank or a dealer.For medium loan amounts in the upper four-digit or lower five-digit range, the Schufa information or the previously impeccable behavior as a customer is not necessarily sufficient – then the lending and provision of assets is not immediately required as security, but often an employment contract and pay slips / wage slips.
A fixed salary / fixed wage from an employment relationship that has existed for a long time is also security for a bank, even if you don’t have a house or large assets, because that means that there is a fixed receipt of money – you shouldn’t pay off the loan properly without collateral or if there is a repayment default, the bank can use the wages as security and have them pledged.
The employment relationship itself can also be a security – for example, civil servants are often offered better conditions for a loan without collateral even with a low income than, for example, construction workers or the self-employed, since they are practically non-cancellable and therefore have an extremely secure income.
However, the following applies: the more and the better collateral you can provide, the better the conditions you get and the cheaper the loan, since the risk for the bank decreases. However, this is especially the case with the higher sums mentioned, ie the smaller the sum, the lower the negative effects on the loan terms if there is no collateral.
A loan without collateral is often promised
Especially on the Internet and in advertisements in daily newspapers – one should be careful here, especially with larger sums and, if necessary, google for other customers’ experiences so that no fraudsters come across. Because a loan without collateral is often promised here, then the loan costs and fees are required in advance and in the end you only get rid of money without getting a loan without collateral.